Rupee may trade in 51.85-52.35 range:Karvy Stock Broking

Karvy Stock Broking has come out with its report on currency. As per the research firm, rupee range for the day is seen between 51.85-52.35/USD.

Rupee lost further ground on Thursday which pushed the local unit to two monthly lows. Demand for dollars by importers and domestic OMC along with a weaker Euro pressurized the rupee. Spot finally settled at 52.15 The Nifty gained for the fourth consecutive session, rising 0.6% amid a choppy trade on Thursday. Markets responded to a better Spanish bond auction in afternoon trade. The Nifty finally settled at 5332 The Dollar Index closed flat on Thursday as no major triggers hit the market. It closed at 79.59 On Thursday, FII’ were net buyers in Equities to the tune of 282 cr whereas they were sellers to the tune of 224 cr in the Debt segment The call rate closed slightly lower at 8.50% as demand for short term money remained lower India’s 10 year yields closed lower in the last trading session, they finally ended at 8.36% lower by 4 bps In the domestic currency markets the rupee lost against the GBP, EUR and JPY by 1.00, 0.82, and 0.36 percent respectively. OUTLOOK: Asian equities continued another day of fall on disappointing US data and corporate earnings. The Korean Won and Kospi both are down after major like LG Chemicals disappointed with weaker results. Market could remain volatile as the first day of the two day G-20 meet begins today; the leaders could as Euro zone to speed up its fight against the Debt crisis. SGX Nifty is trading lower following other peers. It’s trading lower by 33 points. These factors point to a slightly negative rupee for today morning. On the Economic front, From the Euro zone we have IFO - Business Climate which is expected to come in lower at 109.50 compared to last times 109.80, and could have a slight negative effect on the Euro in afternoon trade. From the US we don’t have any major releases. For Today, The rupee is likely to be negative on global equity market cues & the dollar's movement. Weaker equities and dollar demand by importers could hurt the rupee further. But as the rupee is at 14 week lows, market participants would also watch out for potential RBI intervention. The range for the day is seen between 51.85-52.35/$. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

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